Home Warranty

Home warranties include repair costs as well as replacement costs. They often cover any type of break down related to the home appliances.

Warranties can be purchased by the home buyer, regardless of whether or not they are residing in the home.

The coverage area of a home warranty: there is a difference in various types of home warranties as far as coverage area is concerned. In general, most cover heating and cooling systems, plumbing fixtures and all other similar types of appliances. Many of the home warranties cover the roof as well. You may have to pay an additional charge if you want to include private well, septic system and other special household items in the coverage.

What if the home is sold: The home warranty may not pay the repair bill of the seller if the appliance breaks after the sale of the home. Similarly, the buyer will recover the repair costs if an item was broken prior to purchase of the home.

Price to pay for a home warranty: The standard cost of home warranties lies somewhere in the range of $350 to $500. That does not include the coverage of special systems. You are required to verify the list of warranted appliances so that no single appliance remains outside the limit of the warranty.

Time duration of home warranties: In general, most home warranties are effective for one year. You are required to renew the contract after that term if you want to continue with the contract. It is possible that the renewal cost may be higher than the initial cost. You need to verify the renewal cost of the home warranty prior to signing the initial contract.

Co-payment: This is the payment you are initially responsible for when the warranty is put into use. The co- payment can vary a great deal but, in general, they are in the range of $30 to $60.